Question
Joe Exotic & Associates LLC forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 15.0%, and the FCFs
Joe Exotic & Associates LLC forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 15.0%, and the FCFs are expected to continue growing at a 4.0% rate after Year 3.
| Year | 1 | 2 | 3 |
| FCF | $15.0 | $10.0 | $40.0 |
- What is the firm's total corporate value, in millions?
What is the estimated stock price if the firm has $4 million in marketable securities, $10 million in preferred stock, $40 million in debt and 12 million shares outstanding?
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The Meaningful Money Handbook
Authors: Pete Matthew
1st Edition
0857196510, 978-0857196514
